Dynamic Structures u6 s2.4 p27

More dynamic and responsive structures are needed in turbulent environments.
We already know that organisations may outperform competitors by responding more effectively to their changing compeitive and technological contexts.
Organisations need to create dynamic capabilities and compete flexibly. This is an important source of advantage.
Sanchez on dynamic structures:-
 Creating modular product development capability is key.
 Strategic flexibility is also an important capability.

Example SMART car (Swatch Mercedes ART) from MCC was developed from a modular car design, and Smart was a networked organisation.

Must be careful though, managing the relationships between the multiple collaborators and partners can sometimes be difficult or a source of trouble in itself. Therefore the efficiency of structure and partnerships must be continuously re-assessed. Dynamic structures must
 enable dynamic capabilities related to leverageing and managing the flow of knowledge internal and external to the organisations, and
 enhance the strategic flexibility of the organisation to respond effectively to change.

Mintzberg's Adhocracies tend to be dynamic and flexible structures, suited to contexts characterised by high degrees of continuous change and innovation.They encourage experts (people whose knowledge and skills have been highly developed) to interact and ideas to flow freely (Grant 2002).

Such structures can be utilised to enhance innovative and creative capabilities within organisations where 'knowledge' is the key strategic asset.

Examples include hospitals, universities, research centres, consulting/professional services firms, ad agencies, biomedical companies, but also possibly design houses such as Gucci or Armani. Miles (1997) calls these "cellular" form.

Adhocracies continuously evolve. Eisenhardt and Brown (1999) describe the evolution of adhocracies in practice as 'patching' and 'coevolution'. See unit 5.

Patching changes are often small in scale and undertaken on a frequent basis in the light of changing circumstances - evolution not revolution.

Adhocracies also apply to market-based or client-based projects that require flexibility. In general, adhocracies tend to push responsibility toward the point of customer contact, flatten the hierarchical strucutre and move away from centralised "command and control" as found in complex structures.

Example: WPP U6 P34
WPP is a cross between a divisionlised form and an adhocracy. Managers in adhocracies rarely give orders or outline procedures, but tend to act in a liaison capacity.